Would 10m liquid assets and being under 50 be enough for you to walk away or would you miss it too much?

[BlueRug]

All this thread tells me is that the market is due for a major correction

Seems I was a tad early by about 2 weeks.

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[aneftp]

ER perspective here. 52 right at 11M with 60% in RE. I stopped working in the hospital Pit so work is more fun than work so probably work one day a week until I can't. Youngest still in middle school so no point in retiring if I can't travel the world. Playing a good amount of golf, taking more trips, being involved with my kids sports has been really fun. I feel like I am retired, choosing to work alittle and do my side gigs.

I could sell a few properties, be RE debt free, and have about 200K/yr cash flow. My goal is to not touch retirement at all and let it grow living off RE income. Goal is to pay off current RE debt and cash flow 300K/yr which is about how much I would need when kids are all done with college.

RE is great b/c even when you retire, its great for passive income essentially replacing one ER doc salary. Good to have someone else fund my retirement.

Goal is to get to 20M by 60, 40M by 70.

You have lived through the good and bad of real estate of age 52.

Couple of guys I know who were up 15 million in 2004 got greedy and purchased 18 more homes in Florida in 2004 to be built in 2005/6

And everything crashed. All those homes 1.5 million lost almost 50% of valued.

 

[Dr. Rude]

You have lived through the good and bad of real estate of age 52.

Couple of guys I know who were up 15 million in 2004 got greedy and purchased 18 more homes in Florida in 2004 to be built in 2005/6

And everything crashed. All those homes 1.5 million lost almost 50% of valued.

If they had the resources and discipline to hold on, they would have done well.

 

[aneftp]

If they had the resources and discipline to hold on, they would have done well.

No one holds multiple homes under water
Talking more than 10 million under. You can’t hold properties that can only Rent out at 3-4k a month that’s costing you 7-8k a month in mortgage long term x 18 properties.

Just pure greed. Very little money invested. Very little incentive to hold.

 

[Dr. Rude]

No one holds multiple homes under water
Talking more than 10 million under. You can’t hold properties that can only Rent out at 3-4k a month that’s costing you 7-8k a month in mortgage long term x 18 properties.

Just pure greed. Very little money invested. Very little incentive to hold.

very little money invested...i.e., leverage. do the math, if they held out they would have done well....with the benefit of hindsight.

 

[aneftp]

very little money invested...i.e., leverage. do the math, if they held out they would have done well....with the benefit of hindsight.

How can u hold out negative 70k a month? And property didn’t return peak level for 14 years in 2021. Now it’s worth like 2 million each after 17 years

No one can take a 800k loss each year for 14 years. Can u?

 

[BLADEMDA]

Curious as to achieving that number at an age ( sub 50) where you can still maintain nearly all of your physicality how many would continue to work for the pure joy in the OR vs finding a new endeavour teaching, mission work, travel etc. I think its widely assumed that no one is going to flat out retire and plop their feet on the couch and let their brains rot from streaming, facebook, and tik tok.

I am one of the few on SDN who has passed the financial milestone. I would recommend a higher net worth than $10 million based on today's inflation and national debt. I realize that is a controversial statement but the long term purchasing power of the US Dollar is suspect based on the projected spending of Congress and Biden (Executive authority to spend 1/2 a trillion dollars). A much better approach is a 0.5 FTE position which allows you plenty of time to travel or pursue personal interests without tapping into your investments. Of course, if your goal is to die dead broke then have it.

 

[BLADEMDA]

Seems I was a tad early by about 2 weeks.

This mild correction should be bought not sold. There is a lot of money to be made in mid cap and small cap stocks over the next 2 years. This economy is still vibrant and unemployment is low. Be careful before betting against the USA in the short term as the dollar still holds court. Longer term if the debt continues to rise and interest payments skyrocket the USA is in big trouble.

 

[BLADEMDA]

It's not about having a lot, it's about having enough

 

[doctalaughs]

No one holds multiple homes under water
Talking more than 10 million under. You can’t hold properties that can only Rent out at 3-4k a month that’s costing you 7-8k a month in mortgage long term x 18 properties.

Just pure greed. Very little money invested. Very little incentive to hold.

Exactly this - I also know people that were on paper net worth 25M + in 2004/5/6 and literally had to declare bankruptcy, back to zero — and never recovered after that.

I doubt that type of housing crash will happen anytime soon - but for those holding 50+% of their net worth in ANY sector, including real estate, be careful (especially if leveraged). Nothing goes up forever.